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collateral contract

Line breaks: col|lat¦eral con|tract

Definition of collateral contract in English:

noun

Law
A subsidiary contract which induces a person to enter into a main contract or which depends upon the main contract for its existence.
Example sentences
  • For all the reasons which I have already discussed, the relationship created by the letters of credit is separate from and independent of the underlying contracts, including the collateral contract pursuant to which they were opened.
  • It is not incorporated by a mere reference to the terms and conditions of the contract to which the arbitration clause constitute a collateral contract.
  • Side letters can constitute a variation of the main agreement or a collateral contract with terms distinct from those in the main agreement.

Definition of collateral contract in:

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